Insiders In Baylin Technologies Still Down 26% On CA$3.22m Investment

Insiders who bought CA$3.22m worth of Baylin Technologies Inc. (TSE:BYL) stock in the last year recovered part of their losses as the stock rose by 30% last week. However, total losses seen by insiders are still CA$838k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Baylin Technologies

The Last 12 Months Of Insider Transactions At Baylin Technologies

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Jeffrey Royer for CA$3.1m worth of shares, at about CA$0.39 per share. That means that an insider was happy to buy shares at above the current price of CA$0.28. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 8.37m shares for CA$3.2m. On the other hand they divested 9.24k shares, for CA$4.3k. In the last twelve months there was more buying than selling by Baylin Technologies insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Baylin Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Baylin Technologies Insiders Bought Stock Recently

There was some insider buying at Baylin Technologies over the last quarter. Insiders bought CA$32k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Baylin Technologies

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Baylin Technologies insiders own 74% of the company, worth about CA$32m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Baylin Technologies Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Baylin Technologies insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Baylin Technologies. To help with this, we've discovered 5 warning signs (3 don't sit too well with us!) that you ought to be aware of before buying any shares in Baylin Technologies.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.